Loire Valley vs South Africa : which marketing practices regarding Chenin?

Transcription

1 TEAMWORK ESA Loire Valley vs South Africa : which marketing practices regarding Chenin? Nicolas BROUTÉ, Francesco GUIDI, Lora GOULEVANT, Aubin LECOMTE, Sophie MOREL, Styliani NTASIOU, Isara VONGLUANNGAM, Cécile COULON-LEROY - ESA EuAWE Congress Dijon May, 25 th 2018 CONTEXT CHENIN AS A GLOBAL GRAPE CONTEXT LOIRE VALLEY AND SOUTH AFRICA : A TALE OF TWO STORIES Production rank (OIV, 2015) South Africa 1 st Loire Valley 2 nd ha % of worldwide production 30% of worldwide production Share of total (chenin plantings vs region total) 16,9% (Sawis, 2015) 14.1% (Interloire, 2015) PDO/PGI scheme (Implementation date) PDO/PGI scheme for Chenin Wine of Origin (193) 5 regions (main : Western Cape),2 districts (ex: Stellenbosch) AOC (~1935) 3 main subregions (main : Anjou-Saumur), 1 appellations (ex: Anjou Blanc) ha [no restriction on grape varieties] Share of non-sparkling (dry /sweet/semi-sweet) 98% (Sawis, 2015) 35% (Interloire, 2015) (OIV, 2015 ; SAWIS, 2015 ; Interloire 2015) 1

2 RESEARCH QUESTION AND HYPOTHESES RESEARCH METHODS RQ : Which marketing practices are being implemented by Chenin producers in the Loire Valley and in South Africa? Are they really different or do we observe similarities? H1 : There exists a clear distinction between the marketing practices of the two countries, with either PDO/PGI (for France) or grape variety (for South Africa) being mostly shown on the front label H2 : There exists a cluster made of French and South African producers that stresses on either grape variety or PDO as the first information shown on their Label Wine-Searcher pro 180 Labels (90+90) Coding of Variables Price.mean.usd Database design Logistic Regression To describe data between dependent binary variables [country as factor] and variables [Grape ; Winery ; Origin] To test a link across all variables Constitutive [Grape ; Winery ; Origin] Ilustrative variables [Country ; Average Price; Price range] MCA HCA To determine clusters On the first, 3 dimensions of the MCA coordinates (52% of total variances) RM coding / description of variables RESULTS logistic regression Variable name Type Description Code Grape Score (0,1,2,3) Rank of importance on the label Grape_0~3 Winery Score(0,1,2,3) Rank of importance on the label Winery_0~3 Origin Score(0,1,2,3) Rank of importance on the label Origin_0~3 Country Factor Name of the country Price.mean.usd Numeric- class.price Class Price categories Mean price of the wine in US Dollars (USD) Winery = 3 ; Grape = 2 ; Origin = 1 ; Country_F for France, Country_SA for South Africa basic (<5 USD), premium (5 USD <=x<8 USD, super Premium (8 USD <=x < 14 USD), ultra premium (14 USD =< x < 50 USD) et icon (> 50 USD) Call: glm(formula = Winery ~ Country, family = "poisson", data = chenin) Coefficients: Estimate Std. Error z value Pr(> z ) (Intercept) <2e-16 *** CountrySA Call: glm(formula = Origin ~ Country, family = "poisson", data = chenin) Coefficients: Estimate Std. Error z value Pr(> z ) (Intercept) < 2e-16 *** CountrySA e-15 *** Call: glm(formula = Grape ~ Country, family = "poisson", data = chenin) No Significant link between Country_SA and Winery Significant negative link between Country_SA and Origin US$ 26 Price.mean.usd Coefficients: Estimate Std. Error z value Pr(> z ) (Intercept) e-11 *** CountrySA < 2e-16 *** Significant positive link between Country_SA and Grape 2

3 RESULTS - HCA RESULTS - HCA Cluster % Total 45.5% 22.2% 10% 22,2% % S.Africa 83% 12,5% 66,6% 12,5% Mod Grape_2, Origin_0, Winery_3 and Country_SA Origin_2, Country_F and Winery_3 Grape_3, Winery_1 and Winery_0 Origin_3, Winery_2, Grape_0 and Country_F RESULTS Focus on cluster 3 CLUSTER 3 - PARANGONS $category$`3` Cla/Mod Mod/Cla Grape=Grape_ Winery=Winery_ Winery=Winery_ Winery=Winery_ Grape=Grape_ Grape=Grape_ Winery=Winery_ Cluster 3 represents 10% of the wines (18). It includes French (6) and South African (12) wines. Here the grape variety is shown first, long before the winery name Cluster: 3 Patient cottat le grand Spier 21 gables Sign of convergence? Avg price. 13 USD, PGI = IGP Val de Loire Producer = Fournier père et fils (Sancerre) Avg price. 1 USD, District : Stellenbosch Producer = Spier (family-run) 3

4 DISCUSSION LIMITS H1 : There exists a clear distinction between the marketing practices of the two countries, with either PDO / PGI (for France) or grape variety (for South Africa) being mostly shown on the front label YES > summary(chenin2$class.price) basic icon premium super premium ultra premium Mostly Super to ultra- premium wines (3%) due to wine-searcher pro. Database n=180 H2 : There exists a cluster made of French and South African producers that stresses on either grape variety or PDO as the first information shown on their Label YES (on grape) Details basic premium super premium ultra premium icon CONCLUSION & NEXT STEPS APPENDIXES (just in case) 2019 : Great Year with 1 st Worlwide Chenin Congress to be held in Angers (July) Starting point of a common marketing strategy between Chenin producers from the Loire Valley and South Africa? Possible sequels to this study : Measuring the impact of the congress in n+5 years (2024) Conducting the same study on a basic-to-premium wine database (immediate) Explore other marketing practices such as environmental labelling (new in South Africa) 4

5 MAIN REFERENCES South African WOO scheme South Africa : Bruwer, J. (2014). Region-of-origin (ROO) certification as marketing strategy in the South African wine market. International Journal of Wine Business Research, James, T., Wines of the New South Africa : Tradition and Revolution (Berkeley, Calif. 2013) Marais J. (2003). Overview of Chenin Blanc research. Wynboer, December. [online]. Available at SAWIS. (2015). SAWIS. [online]. Available at Wine & I. (201). Tracing Terroir: South Africa s Wine of Origin System. [online]. Available at: WOSA. (201). Wines of South Africa - HOME. [online] Available at: Loire Valley : Baudouin P. Le Chenin, histoire et actualités. Actes d une journée d étude, 28 août 2015, Pôle Culturel, Faye d Anjou. Saint Lambert du Latay :Association des amis de la vigne et du vin d Anjou, Cobbold D. (2015). Le Chenin dans tous ces Etats. [online]. Avaliable at Gillet F, Carvalho P [Appelation Chenin Loire] Synthèse économique. InterLoire FranceAgriMer. (2016). FranceAgriMer Stats [online]. Available at Other : Defrancesco E, Estrella Orrego J, Gennari A. Would New World wines benefit from protected geographical indications in international markets? The case of Argentinean Malbec. Wine Economics and Policy Schirmer R., 200. «Les vignobles et leurs patrimoines : cépages, architectures et paysages au cœur de la mondialisation», Actes du Colloque international Hé ritages et trajectoires rurales en Europe, 6 septembre, Montpellier, UMR 5045 Mutations des territoires en Europe, Université Paul Valéry EXPANSION OF INTERNATIONAL GRAPE VARIETIES (Anderson, 2010) BROADER WIDE OF THE FIELD STUDY DONE ON CHENIN (ESA, 201) 5

6 VERSATILITY CAN BE A WEAKNESS Source : Interloire, ODG, Douane, IRI 45% of total Chenin plantings are dedicated to Sparklings Better ROI for Sparklings especially. crémant de Loire 6